Serving Commercial Customers Carmine Tilghman
“Thinking Outside of the Big Box: How Utilities can Better Serve Commercial Customers with Solar”
Carmine Tilghman Senior Director – Tucson Electric Power
Fort Huachuca: Meeting the needs of the Army Challenge: Help the Army meet its renewable energy goal of deploying one gigawatt of renewable energy by 2025. Issues: 1. Military does not want ownership or maintenance 2. Need to maintain current energy costs – no increase 3. Company has no commercial program or requirement
Fort Huachuca: Meeting the needs of the Army Solution: Create a unique partnership between Army, EITF, TEP, and E.On (EPC). • Utilization of General Service Agreement (GSA) • Easement to facilitate use of land • Utility-owned & operated • Regulatory approval – able to maintain current rate
Fort Huachuca: Meeting the needs of the Army Benefits: 1. 2. 3. 4. 5. 6.
Utility ownership & maintenance of facility Utilization of existing agreement – no need for RFP Re-use of land on installation No change to existing rate structure Part of utility build-out program – will be rate based Potential for future storage facility
SEPA Report: RE Options for key Account Customers
http://www.solarelectricpower.org Click on “Explore Resources – Publications & Media”
Balancing the Needs Customer Needs: • Financial benefit/savings • Price hedging/certainty • Low/no risk • Flexibility • Be “seen as green”
Utility Concerns: • Cost shifting • Available to all customers? • System protection/ interconnection reqt’s • Loss of customer to 3rd party
Things to Consider: • Regulatory implications – will they approve? • Should (or can) societal benefits be used to promote a program benefiting one ratepayer class over others? • What other “value added” components can included? • Who pays for the costs of the program – rate base, customer? • Create a trade-off: give the customer “a reason” to participate • Capitalize on what utilities do best – provide integrated energy solutions
Carmine Tilghman Senior Director – Tucson Electric Power
Fort Huachuca: Meeting the needs of the Army Challenge: Help the Army meet its renewable energy goal of deploying one gigawatt of renewable energy by 2025. Issues: 1. Military does not want ownership or maintenance 2. Need to maintain current energy costs – no increase 3. Company has no commercial program or requirement
Fort Huachuca: Meeting the needs of the Army Solution: Create a unique partnership between Army, EITF, TEP, and E.On (EPC). • Utilization of General Service Agreement (GSA) • Easement to facilitate use of land • Utility-owned & operated • Regulatory approval – able to maintain current rate
Fort Huachuca: Meeting the needs of the Army Benefits: 1. 2. 3. 4. 5. 6.
Utility ownership & maintenance of facility Utilization of existing agreement – no need for RFP Re-use of land on installation No change to existing rate structure Part of utility build-out program – will be rate based Potential for future storage facility
SEPA Report: RE Options for key Account Customers
http://www.solarelectricpower.org Click on “Explore Resources – Publications & Media”
Balancing the Needs Customer Needs: • Financial benefit/savings • Price hedging/certainty • Low/no risk • Flexibility • Be “seen as green”
Utility Concerns: • Cost shifting • Available to all customers? • System protection/ interconnection reqt’s • Loss of customer to 3rd party
Things to Consider: • Regulatory implications – will they approve? • Should (or can) societal benefits be used to promote a program benefiting one ratepayer class over others? • What other “value added” components can included? • Who pays for the costs of the program – rate base, customer? • Create a trade-off: give the customer “a reason” to participate • Capitalize on what utilities do best – provide integrated energy solutions
